Arkansas Property & Casualty Practice Exam Questions and Verified Answers (2024 / 2025) 100% Guarantee Pass
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Course
Arkansas Property & Casualty
Institution
Arkansas Property & Casualty
Arkansas Property & Casualty Practice Exam Questions and Verified Answers (2024 / 2025) 100% Guarantee Pass A primary obligation of an insurance company is to
Answer Pay the claims coveredunder the policy.
2. Which of the following is not a reaction to risk?
Answer Accumulating Risk
3. Which of...
Arkansas Property & Casualty Practice Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(4)/Arkansas%20Prop
Arkansas Property & Casualty Practice Exam
Questions & Verified Answers
1. A primary obligation of an insurance company is to
Answer Pay the claims coveredunder the policy.
2. Which of the following is not a reaction to risk?
Answer Accumulating Risk
3. Which of the following describes a hazard?
Answer An increase in the possibility thata loss may occur.
4. Which of the following best meets the test of the "Principle of Indemnity"?-
Answer Requiring the policyholder to carry insurance to value.
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5. The principle of indemnity is designed to avoid
Answer Overpayment of a claim
6. Which of the following losses would not be covered on an "all-risk" cropinsurance
policy?
Answer Flood
7. The Fair Plan offers what kind of coverage for individuals and businessesin high
hazard areas?
Answer Crime Insurance
8. An agent who collects premiums and converts those premiums to his ownpersonal use
is guilty of
Answer Embezzlement
9. Which of the following terms describes what is subtracted from a claimpayment to
the insured?
Answer Deductible
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10. Oral discussion prior to the development of a written contract can not beused to
extend the terms of the final document. This because of the
Answer Parol Evidence rule
11. To be licensed by more than one insurance company
Answer The agent must beappointed by each company.
12. The basic difference between the DP-1 and the DP-3 is
Answer The covered perils
13. Which of the following has the unlimited right to cancel an insurancepolicy?
Answer The client
14. The main difference between a claims made liability coverage and anoccurence
for liability coverage is
Answer The trigger
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